topic Re: Credit impact for having less credit cards? in Credit Cards

Credit impact for having less credit cards?

slvrhwk — Thu, 11 Dec 2014 22:58:20 GMT

Hi guys,

My strategy has always been to have 1 card of each network (Visa, MC, etc), just so that if I every go to a merchant who only accepts only 1 type of card, I have it in my pocket. I still believe in that strategy. I don't like to collect credit cards. This is my current profile:

Visa - CapOne QS (PC'd from CapOne Visa Platinum). My oldest card. 1.5% cash back on everything. I won't be using this much unless I'm traveling (0% FTF) and the merchant doesn't accept MC. $4250 CL.

MC - Barclays Arrival+. Love this card. Use it for most, if not all, of my transactions. $2500 CL.

Amex - BCP. Recently applied and got approved. Still waiting to receive it. Always wanted an Amex, finally got one -> Happy. $4300 CL.

I may apply for Discover at some point. My credit lines are not gonna get boosts very often. Periodically, maybe once every 6 months or so. Do you think this strategy works in improving credit and credit scores? I see most people here have multiple cards, a lot of you are in double digits. Does it really matter how many credit cards you have?

Re: Credit impact for having less credit cards?

heyarrnold — Thu, 11 Dec 2014 23:21:13 GMT

Not really. I only have 6 cards and my scores are in the high 700's or low 800's. I am not one to collect cards or sock drawer cards. Once they no longer serve me a purpose, I close them.

Re: Credit impact for having less credit cards?

slvrhwk — Thu, 11 Dec 2014 23:33:51 GMT

@heyarrnold wrote:
Not really. I only have 6 cards and my scores are in the high 700's or low 800's. I am not one to collect cards or sock drawer cards. Once they no longer serve me a purpose, I close them.

That's another thing that I had on my mind. BCP and Arrival+ will become my go to cards. I won't be using the QS much. But it is my oldest card. If I find a better Visa card (there are plenty of them), I might wanna just close this and get that instead. But it would affect my AAoA. It's something I haven't been able to figure out.

Re: Credit impact for having less credit cards?

heyarrnold — Thu, 11 Dec 2014 23:35:53 GMT

@slvrhwk wrote:
@heyarrnold wrote:
Not really. I only have 6 cards and my scores are in the high 700's or low 800's. I am not one to collect cards or sock drawer cards. Once they no longer serve me a purpose, I close them.
That's another thing that I had on my mind. BCP and Arrival+ will become my go to cards. I won't be using the QS much. But it is my oldest card. If I find a better Visa card (there are plenty of them), I might wanna just close this and get that instead. But it would affect my AAoA. It's something I haven't been able to figure out.

Well, I woudln't close your oldest card. It doens't have an annual fee. That I would keep. But if closed, it would remain on your report for 10 years.

Re: Credit impact for having less credit cards?

coldnmn — Thu, 11 Dec 2014 23:37:49 GMT

In my opinion it doesn't matter. What matters is how responsibly you use your cards. According to your score you should be good to go for the Discover IT any time you feel you need it.

Re: Credit impact for having less credit cards?

Anonymous — Thu, 11 Dec 2014 23:49:30 GMT

MY girlfriend has Fico scores all over 760 with nothing but one lonely credit card .

Re: Credit impact for having less credit cards?

slvrhwk — Fri, 12 Dec 2014 00:10:52 GMT

@Anonymous wrote:
MY girlfriend has Fico scores all over 760 with nothing but one lonely credit card .

That's very encouraging to hear. Thank you!

Re: Credit impact for having less credit cards?

HiLine — Fri, 12 Dec 2014 00:28:14 GMT

It does matter up to a certain point. I think 3 open is the magic number. Any more than this won't do you any good.

Re: Credit impact for having less credit cards?

Anonymous — Fri, 12 Dec 2014 00:30:17 GMT

@HiLine wrote:
It does matter up to a certain point. I think 3 open is the magic number. Any more than this won't do you any good.

Yeah, but having only 3 cards is boring.

I knew what it was like for several years.

Re: Credit impact for having less credit cards?

HiLine — Fri, 12 Dec 2014 00:31:58 GMT

@Anonymous wrote:
@HiLine wrote:
It does matter up to a certain point. I think 3 open is the magic number. Any more than this won't do you any good.
Yeah, but having only 3 cards is boring.

I knew what it was like for several years.

Really? That's my dream.

OK, maybe 5 cards ...

Re: Credit impact for having less credit cards?

-NewGuy- — Fri, 12 Dec 2014 00:34:11 GMT

@heyarrnold wrote:
Not really. I only have 6 cards and my scores are in the high 700's or low 800's. I am not one to collect cards or sock drawer cards. Once they no longer serve me a purpose, I close them.

I do the same.

Re: Credit impact for having less credit cards?

Anonymous — Fri, 12 Dec 2014 00:39:05 GMT

@HiLine wrote:
It does matter up to a certain point. I think 3 open is the magic number. Any more than this won't do you any good.

The reasons why some people have lots of card include:

1) Hoarders. Never close a card without an AF, so they still have the cards they got starting out, including that $150 store card for a store in my old home town, 2,500 miles away.

2) Hobby. People collect various kinds of cards, and credit cards are just another type! We have a few such people on this forum.

3) "Utilization" People say they need a lot of total CL for utilization. Not something I believe in, but OK.

4) Rewards: Lots of different cards so you can select the one that optimizes the rewards for each transaction. Really subject to diminishing returns, the nth card covers such a small amount of your spend that even if gives 5x the rewards of the others, the gain is small.

Or you can keep the number of cards small!

Re: Credit impact for having less credit cards?

Anonymous — Fri, 12 Dec 2014 00:44:26 GMT

@Anonymous wrote:
@HiLine wrote:
It does matter up to a certain point. I think 3 open is the magic number. Any more than this won't do you any good.
The reasons why some people have lots of card include:

3) "Utilization" People say they need a lot of total CL for utilization. Not something I believe in, but OK.
4) Rewards: Lots of different cards so you can select the one that optimizes the rewards for each transaction. Really subject to diminishing returns, the nth card covers such a small amount of your spend that even if gives 5x the rewards of the others, the gain is small.

Or you can keep the number of cards small!

Or.....Indestructible AAoA.

Re: Credit impact for having less credit cards?

14Fiesta — Fri, 12 Dec 2014 00:54:03 GMT

@Anonymous wrote:
@Anonymous wrote:
@HiLine wrote:
It does matter up to a certain point. I think 3 open is the magic number. Any more than this won't do you any good.
The reasons why some people have lots of card include:

3) "Utilization" People say they need a lot of total CL for utilization. Not something I believe in, but OK.
4) Rewards: Lots of different cards so you can select the one that optimizes the rewards for each transaction. Really subject to diminishing returns, the nth card covers such a small amount of your spend that even if gives 5x the rewards of the others, the gain is small.

Or you can keep the number of cards small!
Or.....Indestructible AAoA.

If you can get CreditAddict to stop apping and garden for a year, yes he could enjoy this benefit.

OP As mentioned before me, 3 cards is the optimal minimum for FICO scoring. Any more won't hurt, but it won't help either. It's really a goal for FICO high achievers. You can be super prime and 780+ with one card, but if you ever want to get close to 850 you will need at least 3 cards.

Re: Credit impact for having less credit cards?

slvrhwk — Fri, 12 Dec 2014 01:11:16 GMT

@14Fiesta Your setup looks very much like where I want to be. 1 Visa, 1 Mastercard, 1 Amex and 1 Discover. Not sure if it's intentional or just a coincidence.

Re: Credit impact for having less credit cards?

14Fiesta — Fri, 12 Dec 2014 02:13:47 GMT

@slvrhwk wrote:
@14Fiesta Your setup looks very much like where I want to be. 1 Visa, 1 Mastercard, 1 Amex and 1 Discover. Not sure if it's intentional or just a coincidence.

Actually it's a bit of both.

Discover was my first CC

I wanted an AMEX for rewards and MSD

I wanted to establish a relationship with chase with no annual fee (rewards complement discover) and I will like that I have a Visa backup just in case someone doesn't take AMEX or Discover

Citi DC I only got for rewards and to establish a relationship. I couldn't care less if its MC, Visa, AMEX, or Discover co-branded. Just happens to be MC so I roll with it.

And for mix I also have 1 store card (not pictured because I couldn't find a decent picture to put in siggy)

Best Buy store card. I got that one for FICO credit mix bonus, as well as I frequent Best Buy and 5% in rewards is great.

Re: Credit impact for having less credit cards?

Anonymous — Thu, 18 Dec 2014 03:05:43 GMT

@slvrhwk wrote:
Hi guys,

My strategy has always been to have 1 card of each network (Visa, MC, etc), just so that if I every go to a merchant who only accepts only 1 type of card, I have it in my pocket. I still believe in that strategy. I don't like to collect credit cards. This is my current profile:
Visa - CapOne QS (PC'd from CapOne Visa Platinum). My oldest card. 1.5% cash back on everything. I won't be using this much unless I'm traveling (0% FTF) and the merchant doesn't accept MC. $4250 CL.
MC - Barclays Arrival+. Love this card. Use it for most, if not all, of my transactions. $2500 CL.
Amex - BCP. Recently applied and got approved. Still waiting to receive it. Always wanted an Amex, finally got one -> Happy. $4300 CL.

I may apply for Discover at some point. My credit lines are not gonna get boosts very often. Periodically, maybe once every 6 months or so. Do you think this strategy works in improving credit and credit scores? I see most people here have multiple cards, a lot of you are in double digits. Does it really matter how many credit cards you have?

My Strategy is Open 4 major Bank CC first
Chase, Boa, Citi and Wells Fargo
and then go for Rewards Lender like
Amex, Discover and Capital One

I never get More than one card from each bank to maximize my credit line
Instead I request Product Change from the bank : I have successfully changed reward programs on Chase, Citi and B of A
keeping all my low apr intact

I never go for sign up bunus
instead I always get promotions from lenders having good relationship
Currently 3 of my cards are on 6month 0% Apr

It worked out for me Great so far I'm in my early 30s my oldest account is only 9 years old
my Fico is above 760 for all 3 bureaus without any Car loan or Mortgage

Bank name value over Rewards is my Motto

Re: Credit impact for having less credit cards?

Anonymous — Thu, 18 Dec 2014 03:04:20 GMT

@Anonymous wrote:
@slvrhwk wrote:
Hi guys,

My strategy has always been to have 1 card of each network (Visa, MC, etc), just so that if I every go to a merchant who only accepts only 1 type of card, I have it in my pocket. I still believe in that strategy. I don't like to collect credit cards. This is my current profile:
Visa - CapOne QS (PC'd from CapOne Visa Platinum). My oldest card. 1.5% cash back on everything. I won't be using this much unless I'm traveling (0% FTF) and the merchant doesn't accept MC. $4250 CL.
MC - Barclays Arrival+. Love this card. Use it for most, if not all, of my transactions. $2500 CL.
Amex - BCP. Recently applied and got approved. Still waiting to receive it. Always wanted an Amex, finally got one -> Happy. $4300 CL.

I may apply for Discover at some point. My credit lines are not gonna get boosts very often. Periodically, maybe once every 6 months or so. Do you think this strategy works in improving credit and credit scores? I see most people here have multiple cards, a lot of you are in double digits. Does it really matter how many credit cards you have?
My Strategy is Open 4 major Bank CC first
Chase, Boa, Citi and Wells Fargo
and then go for Rewards Lender like
Amex, Discover and Capital One

I never get More than one card from each bank to maximize my credit line
Instead I request Product Change from the bank : I have successfully changed reward programs on Chase, Citi and B of A
keeping all my low apr in tact

It worked out for me Great so far I'm in my early 30s my oldest account is only 9 years old
my Fico is above 760 for all 3 bureaus without any Car loan or Mortgage

Bank name value over Rewards is my Motto

Not at all sure what the Bank Name Value is! How do you measure it? And why 4, not BNY Mellon for example (now #5)

Re: Credit impact for having less credit cards?

Anonymous — Thu, 18 Dec 2014 03:05:46 GMT

@Anonymous wrote:
@Anonymous wrote:
@slvrhwk wrote:
Hi guys,

My strategy has always been to have 1 card of each network (Visa, MC, etc), just so that if I every go to a merchant who only accepts only 1 type of card, I have it in my pocket. I still believe in that strategy. I don't like to collect credit cards. This is my current profile:
Visa - CapOne QS (PC'd from CapOne Visa Platinum). My oldest card. 1.5% cash back on everything. I won't be using this much unless I'm traveling (0% FTF) and the merchant doesn't accept MC. $4250 CL.
MC - Barclays Arrival+. Love this card. Use it for most, if not all, of my transactions. $2500 CL.
Amex - BCP. Recently applied and got approved. Still waiting to receive it. Always wanted an Amex, finally got one -> Happy. $4300 CL.

I may apply for Discover at some point. My credit lines are not gonna get boosts very often. Periodically, maybe once every 6 months or so. Do you think this strategy works in improving credit and credit scores? I see most people here have multiple cards, a lot of you are in double digits. Does it really matter how many credit cards you have?
My Strategy is Open 4 major Bank CC first
Chase, Boa, Citi and Wells Fargo
and then go for Rewards Lender like
Amex, Discover and Capital One

I never get More than one card from each bank to maximize my credit line
Instead I request Product Change from the bank : I have successfully changed reward programs on Chase, Citi and B of A
keeping all my low apr in tact

It worked out for me Great so far I'm in my early 30s my oldest account is only 9 years old
my Fico is above 760 for all 3 bureaus without any Car loan or Mortgage

Bank name value over Rewards is my Motto

Not at all sure what the Bank Name Value is! How do you measure it? And why 4, not BNY Mellon for example (now #5)

It means. They wouldn't be caught dead with a CreditOne.

Re: Credit impact for having less credit cards?

Anonymous — Thu, 18 Dec 2014 04:23:19 GMT

Not at all sure what the Bank Name Value is! How do you measure it? And why 4, not BNY Mellon for example (now #5)

As far as I know BNY Mellon doens't offer Credit Card
Its just a method I came up with my own research and what my banker friends told me
It Surely works for me